Investing.com - The Canadian dollar was higher against the U.S. dollar on Friday, rising for the third day as risk appetite was bolstered by optimism that Cyprus was growing closer to a deal on an alternative bailout agreement.
USD/CAD hit a session low of 1.0220, before settling at 1.0229, 0.19% lower for the day and up just 0.04% for the week.
The pair is likely to find support at 1.0197, Thursday's low and resistance at 1.0282, the high of March 19.
Market sentiment was boosted as political leaders in Cyprus prepared to pass legislation to needed to secure a EUR10 billion euro bailout from the European Union and the International Monetary Fund.
A previous agreement that included a levy on deposits in Cypriot banks was rejected by the country's parliament on Tuesday.
The Canadian dollar strengthened on Thursday after Finance Minister Jim Flaherty said that he plans to eliminate the country's deficit before the next scheduled elections in 2015, in part by closing tax loopholes.
On Wednesday, the Federal Reserve announced that it will leave monetary policy unchanged in spite of recent signs that the U.S. recovery is gaining traction, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
Speaking at the end of the bank's two-day policy meeting, Fed Chairman Ben Bernanke said the central bank may gradually wind down the pace of its bond buying, but only after the labor market shows signs of being on a more stable footing.
In the week ahead investors will be closely monitoring developments in Cyprus as a failure to reach a deal could see the country exit the euro zone.
The U.S. is to release a flurry of data including reports on durable goods orders, home sales and consumer confidence, while Thursday's data on Canadian economic growth will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 25
Federal Reserve Chairman Ben Bernanke is to speak at an event in London; his comments will be closely watched for any indication of the possible future direction of monetary policy.
Tuesday, March 26
The U.S. is to release government reports on durable goods orders and new home sales as well as a report on consumer confidence.
Wednesday, March 27
Canada is to publish official data on consumer inflation, which accounts for a majority of overall inflation.
The U.S. is to produce industry data in pending home sales and a government report on crude oil stockpiles.
Thursday, March 28
Canada is to publish data on monthly gross domestic product, the broadest indicator of economic activity and the leading measure of the economy's health.
The U.S. is to release the weekly government report on initial jobless claims and revised data on fourth quarter economic growth.
Friday, March 29
Markets in Canada are to remain closed in observance of Good Friday. Meanwhile, the government is to unveil its annual budget statement.
The U.S. is to round up the week with official data on personal spending and expenditure and revised data form the University of Michigan on consumer sentiment and inflation expectations.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
